Apple said building $1 billion server farm

North Carolina's government is reportedly promising tax breaks to Apple in return for building a large server farm, eventually worth $1 billion, within the East coast state.

A "state official" has told the Charlotte Observer that a bill nearing approval that would bend tax rules for a single, unnamed company are actually meant to accommodate a specific Apple project, which might otherwise be located in another state.

The deal would give the tax breaks to companies with a minority market share in North Carolina, but with a disproportionately large amount of property and staff located in the region. Apple would stand to save as much as $46 million in the space of 10 years but, in return, would have to invest $1 billion within nine years and locate itself in one of the state's poorer counties; Catawba and Cleveland counties are on the short list.

North Carolina is facing steep, double-digit unemployment and could thus soften the blow by giving incentives to companies to do business within the state. Google has been operating a server farm of its own in the state since 2008.

Just what this project would entail isn't clear, but legislators supposedly see it in terms of "juicy" long-term rewards that would be worth even timid beginnings. At first, the Apple server farm would need under 100 full-time staff -- less than 1 percent of the 35,100 employees the Mac maker relies on today. Server farms are usually intended to handle the very largest sets of data a company has to offer and are often located outside of regular company offices both for size reasons and, sometimes, as a physically separate backup.

I just can't see how giving Apple a $1 Billion tax incentive to hire less than 100 people is helping anything.

But I guess the money Apple would have to invest in this would make up for it.

Apple would only probably hire 100 people AFTER the thing is built. If you're going to build a $1 billion anything, that means you're going to hire a hell of a lot of contractors to build it. Since building construction has been hit hard in terms of layoffs, this would be a boon to NC.

As for what Apple could want this for.. massive iTunes/MobileMe backup center?

Apple would only probably hire 100 people AFTER the thing is built. If you're going to build a $1 billion anything, that means you're going to hire a hell of a lot of contractors to build it. Since building construction has been hit hard in terms of layoffs, this would be a boon to NC.

As for what Apple could want this for.. massive iTunes/MobileMe backup center?

I'd rather see a state give Apple a $1 Billion tax break to bring its assembly plants back to the US. Then we will put people permanently back to work. The construction to build this thing is only temporary. If you're going to give someone a $1 Billion tax break it better damn well be a permanent thing and not a 6-8 month thing.

I just can't see how giving Apple a $1 Billion tax incentive to hire less than 100 people is helping anything.

That's not what the article says. It says the tax break could be worth as much as $46 million against Apple's potential $1 billion investment in the facility. Also, the it says the 100 employees are "at first."

Wonder why Apple wouldn't do this project closer to home in California?

Maybe it is the same reason why every other company is moving out of the state.

They better get rolling on this project before the federal government finds some way to tax them into the ground over some rediciolus thing like energy/carbon.

Here are a few things you should know:

1. Apple isn't moving anywhere. Companies routinely geographically distribute infrastructure resources. It's more redundant, results in a saner network topology, and it's cheaper. It has nothing to do with California.

2. Google isn't moving either.

3. A large majority of Apple workers, and Google workers, for that matter, voted for Obama and voted precisely for the kind of carbon tax or cap and trade scheme that we will get. Both companies are working to reduce their carbon footprints, even without being legally required to do so.

4. Al Gore, you might want to know, is on Apple's board.

5. "rediciolus" is spelled RIDICULOUS.

6. If you like pollution and low taxes, you are free to move to Texas (or, if you already live there, to stay), and buy a Dell or something to support your local economy.

1. Apple isn't moving anywhere. Companies routinely geographically distribute infrastructure resources. It's more redundant, results in a saner network topology, and it's cheaper. It has nothing to do with California.

When did I say Apple would be moving their company headquarters? The point is that more and more infrastructure will be build out of the state.

Quote:

Originally Posted by Alonso Perez

2. Google isn't moving either.

Did I even mention Google?

Quote:

Originally Posted by Alonso Perez

3. A large majority of Apple workers, and Google workers, for that matter, voted for Obama and voted precisely for the kind of carbon tax or cap and trade scheme that we will get. Both companies are working to reduce their carbon footprints, even without being legally required to do so.

Why would a company make a business decision based on what their employees want or who they voted for? Sounds like bad business to me...unless you want to end up like GM...but I guess a government run computer manufacturer is next in line...after all we have government run banks and a government owned car company and are about to have government run health care.

Quote:

Originally Posted by Alonso Perez

4. Al Gore, you might want to know, is on Apple's board.

The same Al Gore that flies coast to coast on his private jet? The same Al Gore that has made hundreds of millions of dollars off scaring people? The same Al Gore that has publicly stated he intends to become the first "green billionaire"? Sounds like his intentions are really the environment and not making money off of it.

Quote:

Originally Posted by Alonso Perez

5. "rediciolus" is spelled RIDICULOUS.

Ok, you have me on that one. Because you cannot refute my post in any logical way you resort to personal attacks.

Quote:

Originally Posted by Alonso Perez

6. If you like pollution and low taxes, you are free to move to Texas (or, if you already live there, to stay), and buy a Dell or something to support your local economy.

I guess you didn't get the memo but the state of California is bankrupt. California has on of the highest tax burdens in the country. The tax base that has traditionally bear the majority of the tax burden in the state are moving out of the state. Furthermore, many companies are building in other state because of the high cost of doing business. I guess this is not a problem if you want a "green" state, high taxes, massive budget shortfalls, and no jobs....but then who is going to pay the high taxes? Oh wait......

Anyone know what the prime use of this server farm would be? Mobile.Me would one of it's uses, I suppose. Can anyone think beyond this use? Does Apple already have a server farm on the West Coast. Anyone think that this might be an entry into the enterprise?

if you want a "green" state, high taxes, massive budget shortfalls, and no jobs.

These things are not necessarily connected in any way. It is certainly possible to have a very green state that also has a healthy economy. Just because it hasn't worked in California doesn't mean it can't work elsewhere.

Regarding Apple's potential tax break in North Carolina: Taxes should be the same in every state and there should be no tax variances/abatements granted to anyone. Those are nothing more than bribery. We have had a lot of those here in Texas and they never bring the jobs and secondary economic boost promised. Just more corporate welfare.